LR2s to overcome supply growth though issues on backhaul routes and China remain

Despite a glut of newbuilding deliveries on the way, BRS Group believes LR2 product tankers will continue to earn strong rates.

The French broker said on Monday that LR2 supply is expected to grow by 6.4% by year’s end, but demand should hold it up thanks to low global inventories, refinery dislocation and the European Union embargo on Russian refined products set to kick in on 5 February.